Chart of the Day: Loonie Breakout
No, not a "loony" crazy breakout, a breakout in the Canadian dollar (also called the loonie!) The chart above is of the USD/CAD, so up on this chart is down…
Chart of the Day: Japan
Japan shows a clear pattern of higher lows holding into a ~9 month long resistance area. This is a pattern that often sets up a breakout, but in this case…
Chart of the Day: Failed Breakout in EURUSD
Systematic traders have a perennial debate: how much or how little to intervene in your system's rules? There are a range of acceptable solutions, but the key is to be…
Chart of the Day: Natural Gas
[dc]I[/dc]f you are a discretionary trader, you might also consider using some trading systems. In my published research, I publish three types of trades: purely discretionary trades (on both weekly…
Trading the Unexpected
A pattern in volatility can sometimes give a directional tilt to the market, but, more importantly, how do we know when a trade is wrong and what do we do about it?
Chart of the Day: Moving Stops with Confirmation
Too many times, when people talk about "trading patterns" they are focusing on entry patterns. Yes, it is important to have patterns that show a positive expectancy, but the decisions…
Chart of the Day: AAPL
Volatility contraction sets the stage for a selloff.
Chart of the Day: Gold
[dc]T[/dc]echnically speaking, the chart of Gold is complicated and unclear. To recap: the second half of 2011 saw a sharp collapse in prices. This selloff found support around 1600 (1,550…
Chart of the Day: Long-term S&P 500 Bias
Today's chart of the day will be a little different. Take a look at this table which shows 2 week, 1, 3, 6, and 12 month returns for every trading…
Chart of the Day: Breakout in the S&P 500
One of the tools I use to evaluate market action is the standard deviation spike, which expresses each day's return a standard deviation of the previous 20 trading days. (This…
Chart of the Day: HAIN
Long-time market leader consistently outperforming broad market, sector and peers. Check. Positive earnings surprise. Check. Several days of tight consolidation at highs. Check. This is an excellent technical setup to…
Chart of the Day: Potential Failure Test in Beans
The most important levels in markets are those that are clearly visible to all market participants. The July pivot high in Soybeans is a good example of an important level…
Chart of the Day: Volatility Contraction in Soybeans
Volatility contraction is an important element of market action. Essentially, when a market has been quiet for a period of time, there is a higher chance of breakout trades working,…
Reader question: Range or Flag in the AUDJPY?
Reader Greg asks this question: [dc]R[/dc]egarding your Chart of the day: Bullish Pattern in Aud/Jpy, which as you predicted broke out to the upside. My question is simple...why did you…
Chart of the Day: Breakout Setup in DFS
Watch DFS in a breakout above resistance (roughly 34.45 – 34.75.) Resistance levels are usually not clear lines, but rather rough "zones" where selling pressure has previously been able to…
Chart of the Day: Range in Corn Futures
A few lessons here from the daily continuous chart of Corn futures (it's worthwhile looking at the Sept contact along and considering the difference in patterns the roll creates, but…